Five million households in England are expected to be in “fuel stress” as of Friday as a result of soaring energy bills.
Analysis by the Dissolution Fund says the number of households spending more than 10 percent of their budgets on gas and electricity will double from 2.5 million to 5 million overnight – more than a fifth of the total quantity.
That abolition of the energy price ceiling will see the typical fuel bill rise by £ 693 to £ 1971 a year from this month, and is set to rise again in October.
The Resolution Foundation’s briefing, Stressed Out, says the rise in October could mean another 2.5 million are pushed into fuel stress, leaving a total of 7.5 million with their budgets stretched by energy costs – nearly a third of all households in England.
Low-income households will most feel the pain of rising bills, with the poorest fifth of households expected to spend over twice as much of their family budgets on energy costs as the richest fifth – 10 per cent compared to 4 per cent.
This squeeze is even after Rishi Sunaks support package for families, including a discount of £ 150 in municipal tax and a discount of £ 200 to bill payerstaken in consideration.
Those living in poorly insulated homes with an energy efficiency rating of E can expect their bills to be £ 320 higher than those in houses of the same size but with a C rating.
Nearly a quarter or 24 percent of households in the Northeast are in fuel stress, the highest in the country, a figure that could rise to 41 percent in October, the document says.
Jonathan Marshall, senior economist at the Resolution Foundation, said: “Today’s rise in the energy price cap will see the number of households experiencing fuel stress double to five million.
“With the price cap expected to rise sharply again on October 1, another 2.5 million households could fall into fuel stress this fall unless more support is provided.
“There are no easy ways to protect people from rising bills in the current climate. But as many of the poorest households miss out on the tax rebate, this scheme should be used to supplement, rather than replace, support through the benefit system, which is better equipped. to target lower-income families.
“Another increase in energy bills in the autumn accelerates the need for more immediate support as well as a clear, long-term strategy for improving housing insulation, increasing renewable energy and nuclear electricity production and reforming energy markets so that families’ energy bills are less dependent on global gas prices.”